OFF3R Index

Equity crowdfunding performance defies Brexit uncertainty

Equity Crowdfunding defies Brexit Uncertainty
Written by James Mackonochie

The latest OFF3R Index data reveals that the first half of 2017 was the strongest 6 months for equity crowdfunding to date. The data comes as the EU and UK negotiating teams sit down for their second round of Brexit negotiations in Brussels. The fact that equity crowdfunding defies Brexit uncertainty is positive news for the UK economy. Particularly in light of the backdrop of a highly unstable political environment and mixed economic signals in the UK.

Six of the leading equity crowdfunding platforms that form the OFF3R Index raised nearly £130M in 2017 for UK private companies. This is £2M above the previous half yearly record that was reached back in the second half of 2015. The strength of this data will boost the confidence of the UK Fintech scene as debate continues about whether the sector can remain competitive post-Brexit.

Total Raised via Equity Crowdfunding Platforms

 

The record breaking month of March 2017, where Over £40 million was raised, buoyed this data. The period as a whole was characterised by some very large fundraises from Q1 2017 and these have contributed to the record breaking first half of 2017.

The big three platforms vying for the top spot

The data also revealed that competition for the largest equity crowdfunding platform by total funds raised is hotting up. Crowdcube, Seedrs and SyndicateRoom established themselves as the market leaders in this sector by total funds raised. With little to separate the three platforms by amount raised in the first half of 2017.

OFF3R will shortly release the half yearly data for the P2P lending sector in the UK. Early indications are that this sector has also had a very strong 2017 to date. This will help to further enhance the strength and reputation of the UK Fintech scene.

OFF3R’s COO, James Mackonochie, commented that: “it is very encouraging to see such strong performance data from one of the UK Fintech stalwarts. This data illustrates the appetite investors in the UK have to support growing and enterprising businesses.”

Mackonochie continued that “the establishment of three large players in the equity crowdfunding sector reflects the position of the more established P2P lending sector. This gives investors greater choice when looking for their next investment. The industry continues to see new entrants coming to the market. However, the three largest platforms now have an established position with a large numbers of active investors.”

It is a very encouraging sign for the industry that we have seen the strongest 6 month period for equity crowdfunding. However, the real barometer of the industry performance will come at the end of the year. 2016 saw a year on year increase of 9% in total funds raised from 2015. A good second half of the year will mean that the industry should be able to surpass that target.

Compare the latest Equity Crowdfunding opportunities with OFF3R. Your Capital is at Risk.

All data for this article has been provided by the OFF3R Index.

About the author

James Mackonochie

James is the co-founder and COO at OFF3R. He has over 10 years of experience working in the City with a leading Management Consultancy. James holds a BSc degree in Business and Management and a number of professional qualifications.